Oando PLC YTD September 2013 Performance …...Oando PLC YTD September 2013 Performance Review 2 This presentation does not constitute an invitation to underwrite, subscribe for, or

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www.oandoplc.com

Oando PLC YTD September 2013Performance Review

2

This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire ordispose of any Oando Plc (the “Company”) shares or other securities.

This presentation includes certain forward looking statements with respect to certain developmentprojects, potential collaborative partnerships, results of operations and certain plans and objectives of theCompany including, in particular and without limitation, the statements regarding potential sales revenuesfrom projects, both current and under development, possible launch dates for new projects, and anyrevenue and profit guidance. By their very nature forward looking statements involve risk and uncertaintythat could cause actual results and developments to differ materially from those expressed or implied. Thesignificant risks related to the Company’s business which could cause the Company’s actual results anddevelopments to differ materially from those forward looking statements are discussed in the Company’sannual report and other filings. All forward looking statements in this presentation are based oninformation known to the Company on the date hereof. The Company will not publicly update or revise anyforward looking statements, whether as a result of new information, future events or otherwise.

Past performance is no guide to future performance and persons needing advice should consult anindependent financial adviser.

Disclaimer

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Contents

I Asset Overview

II Operational Update

III YTD September 2013 Performance Review

IV Strategic Overview

V Q & A

4

Asset Overview

Supply &Trading

Gas & Power

MarketingMarketing

EnergyServices

Exploration &Production

#1

• Producing assets: OML 125 & OML 56.• Development & appraisal: OML 134, OML 90, OML 13

& OPL 236.• Exploration: OPL 278, OPL 282, OPL 321, OPL 323,

OML122, JDZ, Block 26 & Rubai Licenses

• 4 swamp rigs: • 3 in contract• 1 awaiting

commencement of operation

• Drill bits and engineering services

• Total fluids management.

• Gas Pipeline franchise:GNL: 100km Lagos EHGC: 128km EastCHGC: 5km East

• Akute & Alausa captive Power Plants

• Compressed Natural Gas Facility: 150kscm/day

• Trading desks and operations in Nigeria and Bermuda.

• Trading consultants in the UK and Singapore.

• 300+ retail outlets in Nigeria, Ghana and Togo

• 8 terminals (159.5ML)• 3 Aviation fuel depots

• 2 lube blending plants (55m litres / annum)

• 7 LPG filling plants

• OER listed on the TSX• 94.6% ownership of OER

• Largest swamp drilling fleet in Nigeria servicing IOCs

• First private sector company to enter gas distribution in Nigeria

• 3 gas pipeline franchises• 2 IPPs• 1 CNG Facility

• Largest indigenous supply and trading player in the sub-Saharan region.

• 15% market share in PMS importation.

• 27% aggregate market share amongst the majors in Nigeria

• Large distribution footprint with access to over 1,500 trucks and 150m litres storage capacity.

#1

#1

#1

Description Assets

5

Asset OverviewU

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6

Operational Update

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Op

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Zero Loss Time Injury(LTI) on 3 operationalrigs this year.

Average Operatingefficiency of 3 rigs is94.5% YTD.

Refurbishment of Fourthrig (Respect) completed.At advanced stages ofcontract negotiation withIOC.

Identified partner for theconstruction of mudplant

Drilled and completedthe EB-6 well in theEbendo Field

With the tie-in of Well 6,the field will be capableof up to 7,140 bopd(3,213 bopd OER share)

Umugini pipeline underconstruction

2 wells successfullydrilled in Qua Iboe withfield developmentunderway.

Alausa IPP:Commissioned in Octoberand has commencedoperations with customer,Lagos State Government.

GL4: Statutory permits arenow in place. Addition of30mmscf/day of capacity.Awaiting FID.

Compressed Natural GasFacility: commissionedand has commencedoperations with availablecapacity of150,000scm/day.

Upstream Division Midstream Division Downstream Division

Operational Update


EnergyServices

Gas &Power

Supply &Trading

MarketingMarketing

Opened trading officein South Africa. Firstcargo to be shippedin shortly.

Commencedbusinessdevelopment in Libya.

Recommencedtrading of spot crudecargoes.

Grown LPG market shareto 13% from 11% with theLaunch of CylinderExchange Scheme (CES)and sale of 3kg cylindersvia Micro-Finance Banks.

Completed and startedproduction from theApapa Lubes Plant withan average reduction of16% in cost of productionand dispatch.

20 Station upgradescompleted; 12 currently inprogress, as part ofongoing stationrationalization.

Retail Online MonitoringSystem (ROMS) beingdeveloped to improveretail business efficiency.

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YTD September 2013Performance Review

9

N’ MillionYTD Sept

2013YTD Sept

2012 Variance

Turnover 386,251 487,770 (21%)

Gross Margin 49,181 55,213 (11%)

Non-interest Expenses (26,273) (28,073) (6%)

Other Operating Income 3,516 4,885 (28%)

EBITDA 26,424 32,025 (17%)

Net Finance Costs (8,613) (7,631) 13%

Depreciation and Amortization (8,050) (6,987) 15%

Profit before Tax (PBT) 9,761 17,408 (44%)

Profit after Tax (PAT)/Net Profit 6,092 9,272 (34%)

-21%

-34%

-17%

Turnover of N386.3 Billion

EBITDA of N26.4 Billion

Profit after Tax of N6.1 Billion

Profit & Loss Highlights

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Quarterly Contribution Breakdown

N’ Million Q3 Q2 Q1

Turnover 105,924 159,267 121,061

Gross Margin 16,596 17,288 15,296

Non-interest Expenses (8,269) (9,972) (8,031)

Other Operating Income 2,048 275 1,193

EBITDA 10,375 7,591 8,458

Net Finance Costs (4,368) (2,692) (1,552)

Depreciation and Amortization (2,401) (3,033) (2,616)

Profit before Tax (PBT) 3,605 1,866 4,290

Profit after Tax (PAT)/Net Profit 1,821 1,823 2,448

Q1 31%

Q2 41%

Q3 28%

Contribution

Q1 40%

Q2 30%

Q3 30%

Q1 32%

Q2 29%

Q3 39%

EBITDA of N26.4 Billion

Profit after Tax of N6.1 Billion

Turnover of N386.3 Billion

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Group Balance Sheet Highlights

15%

-19%

6%

EBITDA of

N’ MillionYTD Sept

2013 FYE 2012 Variance

Fixed Assets149,290 130,325 15%

Other Non-current assets252,270 238,686 6%

Stock30,077 18,111 66%

Trade and other Debtors120,844 114,534 6%

Bank and cash balances 12,778 13,409 (5%)

Trade and other Creditors123,546 93,469 32%

Short Term Borrowings 172,172 213,666 (19%)

Long Term Borrowings 84,603 75,221 12%

Equity & Reserves155,688 105,355 48%

Fixed Assets of N149.3Bn

ST Borrowing of N172.2Bn

Trade & Other Debtors of N120.8Bn

12As at 30 September, 2013

Use

of F

und

s

Rig AcquisitionRig refurbishmentDrill Bits

Asset AcquisitionSignature BonusesFarm-in FeesAsset Development

EHGC PipelineCNG projectGaslink customer

connects

Import Finance facilitiesand CPs for whiteproduct importation

Group Debt Breakdown


EnergyServices

Gas &Power

Supply &Trading

MarketingMarketing

Total Debt N257Billion UsesSources

E & PN121Bn OES

N41Bn

OGPN23Bn

OSTN24Bn

GRPN48Bn

E & PN34Bn

OESN34Bn

OGPN21Bn

OSTN16Bn

OMPN84Bn

GRPN67Bn

Short Term

N172Bn

Long Term

N85Bn

Import Finance facilities

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Divisional Performance Analysis

N’ MillionMarketing

Supply & Trading

Gas &Power

EnergyServices

Exploration& Production

Turnover 171,176 283,110 19,737 15,998 17,081

Gross Margin 14,441 6,067 4,564 10,318 13,983

EBITDA 4,613 3,911 3,367 5,434 11,469

Profit before Tax (PBT) 1,969 4,057 4,136 (3,076) 6,983

Profit after Tax (PAT) 1,346 3,738 3,000 (2,099) 4,969

Net Profit Margin 1% 1% 15% (13%) 29%

Gro

ss P

rofit

PA

T A

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Total Group figures do not equal sum of individual entities due to intercompany adjustments (sales, interest, etc) andcorporate center activities.

-53%7% 29%

-410%

384%

OMPLC OST OGP OES E & P

YTD Sept 2012

YTD Sept 2013

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Divisional Performance AnalysisTu

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–N

386.

3 B

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E & P3%

OES3% OGP

4%

OST56%

OMP34%

E & P40%

OES19%

OGP12%

OST14%

OMP16%

E & P28%

OES21%OGP

9%

OST12%

OMP29%

E & P 45%

OGP 27%

OST 34%

OMP 12%

EB

ITD

A –

N26

.4 B

illio

nG

ross M

argin –

N49.2 B

illion

PA

T –

N6.1 B

illion

Total Group figures do not equal sum of individual entities due to intercompany adjustments (sales, interest, etc) andcorporate center activities.

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Sector Performance - Upstream


EnergyServices

N’ Million

Turnover

Gross Margin

EBITDA

EBITDA Margin

Profit before tax (PBT)

Profit after tax (PAT)

Net Profit Margin

YTD Sept2013

17,081

13,983

11,469

67%

6,983

4,969

29%

YTD Sept2012

17,996

14,665

11,370

63%

3,370

(1,750)

(10%)

Variance

(5%)

(5%)

1%

-

107%

384%

-

N’ Million

Turnover

Gross Margin

EBITDA

EBITDA Margin



Net Profit Margin

YTD Sept2013

15,998

12,776

5,434

34%

(3,076)

(2,099)

(13%)

YTD Sept2012

14,252

12,032

6,639

47%

(605)

(412)

(3%)

Variance

12%

6%

(18%)

-

(408%)

(410%)

-

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Sector Performance - Midstream

Gas & Power

N’ Million

Turnover

Gross Margin

EBITDA

EBITDA Margin



Net Profit Margin

YTD Sept2013

19,737

4,564

3,367

17%

4,136

3,000

15%

YTD Sept2012

14,193

3,691

2,829

20%

3,139

2,333

16%

Variance

39%

24%

19%

-

32%

29%

-

17

Sector Performance - Downstream

Supply &Trading

OandoMarketing

MarketingMarketing

N’ Million

Turnover

Gross Margin

EBITDA

EBITDA Margin



Net Profit Margin

YTD Sept2013

283,110

6,067

3,911

1%

4,057

3,738

1%

YTD Sept2012

343,525

8,275

4,333

1%

4,346

3,506

1%

Variance

(18%)

(27%)

(10%)

-

(7%)

7%

-

N’ Million

Turnover

Gross Margin

EBITDA

EBITDA Margin



Net Profit Margin

YTD Sept2013

171,176

14,441

4,613

3%

1,969

1,346

1%

YTD Sept2012

183,781

18,291

7,375

4%

4,197

2,860

2%

Variance

(7%)

(21%)

(37%)

-

(53%)

(53%)

-

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Strategic Overview

Supply &Trading

Gas & Power

MarketingMarketing

EnergyServices

Terminals


• Organic Growth Production, 5-10kboed• Reserves 2P: 12.6-16mmbbls• Inorganic Growth Acquisition

production target: 45kboed• Inorganic Growth Acquisition Reserves

target: 2P: 220mmboe; 2C: 493mmboe

• Combined Production of 55-75kboedReserves 2P: 300mmboe

• Growth Production 75-100kboed • Maintain production of 100kboed • Grow Reserves from 300mmboe -

500mmboe

• Fully refurbish and deploy 4th rig intooperation

• Enter into land rig space, deploy 2 land drilling rigs

• Expand product offering (MWD, etc)

• Divestment of up to 49% or potentiallisting

• Deploy 2 additional land drilling rigs

• Feasibility Study on deep-waterparticipation with major partner

• Divestment of an additional 25%

• Expand Sub-Saharan geographical product distribution coverage

• Substantially increase crude oil market share

• Increase white products market dominance by leveraging new import infrastructure

• Increase geographical presence

• Completion of construction of the Apapa Jetty and subsea pipelines in the Lagos Port

• Commence FEED on Badagry Terminalfacility

• Development of a 210,000MT importterminal facility in Badagry

• Expand white product storage facilities in Nigeria

Current: 2013 Mid Term: 2014-2015 Long Term: 2015

Up

stre

amM

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Do

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• Increase distribution efficiency and expansion into high margin volumes, Lubes & LPG distribution

• Divestment of up to 49% or potential listing on the NSE

• Divestment of additional 25%

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Strategic Overview

• Complete construction:• CNG; Alausa IPP

• Commence construction of GL4• Achieve average volume of 80mmscf/d

• Sell 90% of current Gaslink capacity• Achieve FEED of CHGC expansion

• Complete feasibility and engineering for EIIJ project

• Complete evaluation and planning for Modular Gas Processing and Mini LNG projects

• Implement strategic financing program, portfolio rationalization and M&A deals

• Commence construction of 1st CPF and 2 more gas pipeline franchise areas in Nigeria

• Commence execution on Modular Gas Processing and Mini LNG projects

• Complete construction of at least 50MW Captive IPPs

• Execute grid-connected electricity supply projects

Q & Awww.oandoplc.com

Oando PLC YTD September 2013 Performance …...Oando PLC YTD September 2013 Performance Review 2 This presentation does not constitute an invitation to underwrite, subscribe for, or

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